XRP touches two-week low as traders realize more than $25 million in losses

• XRP traders registered $25.67 million in losses on since Tuesday. 
• XRP price slumped to a two-week low of $0.56 on Wednesday. 
• Ripple is expected to file its response to the SEC’s remedies-related brief by April 22. 

Ripple (XRP) price declined to $0.56 on Wednesday, the lowest level in two weeks, as traders awaited further developments in the Securities and Exchange Commission’s (SEC) lawsuit against Ripple. The next key deadline in the legal battle is April 22, when Ripple is expected to file its response to the SEC’s remedies-related brief. 

Meanwhile, the recent decline in XRP’s price has caused traders to realize more than $25 million in losses in the past two days. 

Daily digest market movers: XRP traders shed holdings at losses ahead of looming lawsuit deadline

• Ripple holders realized $25.67 million in losses on their XRP holdings since Tuesday, as seen on the Network Realized Profit/ Loss chart on Santiment. 
• The metric measures the overall profit or loss realized by traders who sold their assets on a particular day. If traders realize losses alongside a drop in price, it is considered a sign of capitulation. 

Network Realized Profit/ Loss.

• Ripple traders are shedding their XRP holdings likely due to the price decline in the asset and the uncertainty surrounding the altcoin’s security status. 
• Ripple’s Chief Legal Officer Stuart Alderoty commented on the SEC’s stance on XRP’s security status and the regulator’s different definitions of what constitutes a crypto ecosystem, in his recent tweet. 
• Alderoty addresses the community’s concern over XRP’s status as a “non-security” and fear that SEC could get Judge Analisa Torres’ XRP ruling thrown out.

• XRP holders pay attention to the next key deadline in the Ripple lawsuit, April 22, when Ripple is expected to file its opposition to the SEC’s remedies-related brief. 

Technical analysis: XRP price could sweep liquidity at $0.56 and begin recovery

XRP price has formed three consecutive lower highs and lower lows in April, as seen on the XRP/USDT 4-hour chart. The altcoin’s descent will likely result in a sweep of liquidity at the $0.5673 support, the March 20 low and a key level on the 4-hour chart. Further down, key support level on the daily chart is $0.5386, the February 22 low.

XRP price has sustained above the two key supports for nearly a month now. 

If XRP price collects liquidity at the $0.5673 support, the altcoin is likely to bounce back and fill the Fair Value Gap (FVG) formed between $0.6030 and $0.6103 (4-hour timeframe). There is another FVG that could likely get filled, between the $0.6185 and $0.6204 levels on the daily timeframe. 

The Relative Strength Index (RSI) reads 36.19, close to the oversold region at and below 30. 

XRP/USDT 4-hour chart 

A 4-hour candlestick close above the psychologically important $0.60 level could invalidate the thesis of an initial decline in XRP. The altcoin could rally towards the FVGs and fill the inefficiencies on both the 4-hour and daily timeframes. XRP price could face resistance at $0.6147, the 50% Fibonacci placeholder of the climb from its January 31 low of $0.4853 to the March 11 peak of $0.7440.